Preamble
WHEREAS, the Constitution uner Section 5. Article XI, enjoins that "Each local government unit shall have the power to create its own sources of revenue and levy taxes, subject to such limitations as may be provided by law"; WHEREAS, the Constitution under Section 2, Article XI, also enjoins the allocation among the different local government units of their powers and resources; WHEREAS, the Constitution provides that the State shall guarantee and promote the autonomy of local government units to ensure their fullest development as self-reliant communities and local autonomy can be guaranteed and enhanced only by enabling the local government units to exploit fully their taxing and other revenue-raising powers; WHEREAS, there is an urgent and compelling need to codify all existing tax laws scattered in a welter of various acts, Commonwealth acts and Republic acts, as well as in a number of Supreme Court decisions, for a more efficient system of local tax administration that will work to the benefit of both die Government and the taxpayer; WHEREAS, a local tax code delineating the taxing powers of the different local government units and limiting the same powers conformably to the provisions of the Constitution will ensure uniformity in local taxation, obviate multiple and competitive local impositions and generate adequate resources for the local government units without overburdening the taxpayers; and WHEREAS, a local tax code insuring adequate resources will also transform the local government units into effective instruments of national development and progress; NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution as Commander-in-Chief of all the Armed Forces of the Philippines, and pursuant to Proclamation No. 1081, dated September 21, 1972, and General Order No. 1, dated September 22, 1972 as amended, in compliance with the pertinent mandates of the Constitution and to provide the local government units with adequate sources of revenue that will make them viable, self-sufficient and effective instruments of national development and progress, without over-burdening the taxpayers, hereby adopt, promulgate and decree, as it is hereby adopt, promulgate and decree, as it is hereby adopted, promulgated and decreed as part of the law of the land the attached Local Tax Code for implementation. This Decree shall take effect July 1, 1973. Done in the City of Manila, this 28th day of June, in the year of Our Lord ninety,, hundred and seventy-three. (Sgd.) FERDINAND E. MARCOS President Republic of the Philippines By the President: (Sgd.) ROBERTO V. REYES Assistant Executive Secretary The following is the text of The Local Tax Code attached to Presidential Decree No. 231 THE LOCAL TAX CODE Table of Contents General Provisions 1. Scope 2. Fundamental principles 3. Definitions 4. Local authority 5. Common limitations on the taxing powers of local governments Specific Provisions on the Taxing and Other Revenue-Raising Powers of Local Governments Article 1. Provinces 6. Scope of power 7. Tax on transfer of real property ownership 8. Tax on business of printing and publication 9. Franchise tax 10. Sand and gravel fee 11. Taxes transferred 12. Occupation tax 13. Amusement tax on admission 14. Fees for sealing and licensing of weights and measures 15. Tax on peddlers 16. Rental fee for use of municipal waters, rivers, etc. as log pond 17. Specific limitations on power Article 2. Municipalities 18. Scope of power 19. Tax on business 20. Fees and charges 21. Fishery rentals or fees 22. Specific limitations on power Article 3. Cities 23. Scope of power 24. Additional taxing powers 25. Specific limitation on power Article 4. Barrios 26. Scope of power 27. License taxes and fees 28. Service charges 29. Contributions Article 5. Common Revenue-Raising Powers 30. Market fees 31. Slaughterhouse fees 32. Public utility charges 33. Tuition fees 34. Tolls for roads, bridges, canals and ferries 35. Charges for holding benefits 36. Permit fee 37. Service charges Article 6. Residence Tax 38. The imposition, rates and sharing of the proceeds of the residence tax General Administrative Provisions Article 1. Ordinances 39. Ordinance 40. Numbering of ordinances 41. Approval of tax ordinances by local chief executive; veto power 42. Effectivity of tax ordinance 43. Publication of tax ordinance 44. Review and suspension of tax ordinance 45. Formal protest against a tax ordinance 46. Ordinances considered revoked 47. Question on the legality of a tax ordinance 48. Attempt to enforce void or suspended tax ordinance 49. Similar tax or fee not specifically enumerated 50. Tax or fee not provided for 51. Administrative or regulatory measures 52. Penal provisions of tax ordinance Article 2. Collection of Taxes 53. Fixing of the tax and manner of payment 54. Accrual of the tax 55. Time for the payment 56. Surcharges and interests on unpaid tax, fee, or charge 57. Interest on other unpaid revenues 58. Collection of local revenue by treasurer 59. Examination of books of accounts and pertinent records of businessmen by provincial or city treasurer Article 3. Civil Remedies for Collection of Revenues 60. Application of Article 61. Local government's lien 62. Civil remedies 63. Distraint of personal property Final Provisions 64. Transitory provisions 65. Administrative authority of the Secretary of Finance 66. Separability clause 67. Repealing clause THE LOCAL TAX CODE GENERAL PROVISIONS SPECIFIC PROVISIONS ON THE TAXING AND OTHER REVENUE-RAISING POWERS OF LOCAL GOVERNMENTS GENERAL ADMINISTRATIVE PROVISIONS Article 1. Ordinances